Part II: Limitation of Suits, Appeals and Applications

Section 7: Disability of one of several persons. It supplements Section 6 and explains about the disability of one of several persons and its effects

Section 8: Special exceptions. Says that suits for pre-emption are not governed by Section 6 and 7 of the act and inspite of the disability, they must be proceeded with and no extension of time will be given of the disability of the Plaintiff.

SEBI has earlier issued directions to stock exchanges with regard to the limitation period for filing an arbitration reference. In view of streamlining the provisions in the depositories on the captioned subject, it is decided that the limitation period for filing an arbitration reference shall be governed by the law of limitation, i.e., the Limitation Act, 1963. The modified limitation period shall also be applicable to cover inter alia the following cases:

i. where the limitation period (in terms of Limitation Act, 1963) have not yet elapsed and the parties have not filed for arbitration with the depository, or,

ii. where the arbitration application was filed but was rejected solely on the ground of delay in filing within the earlier limitation period; and the limitation period (in terms of Limitation Act, 1963) have not yet elapsed.

2. Accordingly, the Depositories shall:

i. make necessary amendments to the relevant bye-laws for the implementation of the above decision,

ii. bring the provisions of this circular to the notice of the Depository Participants and direct them to communicate the same to all the Beneficial Owners (BOs), and,

iii. disseminate the same on the website.

3. This circular is being issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992 read with section 19 of the Depositories Act, 1996 in the interests of investors in securities and to promote the development of, and to regulate the securities market.

Related cases regarding applicability of the Act

E. Subbammal Vs R. Rajendran and Anr 2012–2-L.W. 524: A suit, to enforce right of pre-emption should be filed within one year from the date of physical possession of whole or part of the property or the same should be filed within one year from the date of registration of sale deed if the same does not admit physical possession of the whole or part of the property

December 2011: [2011] 16 LNIN 329 (Delhi): Admission of a debt either in a balance sheet or in form of a duly signed letter, would amount to an acknowledgement for extending period of limitation for filing of winding up petition